Zara Fast Fshion
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Zara, the big clothing chain, created a novel formula in apparel retailing by shipping new products to its stores around the world every few days. Zara was opening new stores at a rate of one a week, and showed no signs of slowing. Since the dollar melts, even if the gap of price is widening between Zara's products and the competitors that imported from low-wage countries and paid for goods in dollars, Zara still had plenty of space to grow in Europe before the market is saturated. But to accomplish its ambitions of becoming a global brand, it will have to replicate on other continents its finely tuned European distribution system. Besides, Zara's parent, known as Inditex, was moving in several directions at once. It was expanding its other retail chains such as Massimo Dutti and Bershka; introducing new store concepts like Zara Home, a home furnishings outlet; and adding lines of large-size garments for older woman at Zara itself may dilute Zara's brand image.
There were three main rivals including Gap, H&M, and Benetton to compete with the Zara. All of the competitors showed the signs of rejuvenation after passing through rough patches, but Zara had been flourishing all along. Although Zara was not well known in the American market because owned the few stores in East segment, Zara had so far kept the challenges it faced from crimping its robust performance.
The main advantages for Zara was speed to market, achieving the kind of deliver and restocking usually associated with grocery stores, not apparel merchants...